India diversifies LPG imports during West Asia conflict as OMCs absorb price shock

NEW DELHI: (Jun 20) India sharply diversified its liquefied petroleum gas (LPG) sourcing during the West Asia conflict, increasing imports from the US, Iran and several other countries to reduce dependence on the Gulf region, while state-owned fuel retailers absorbed much of the surge in international prices to shield households.

Before the conflict, roughly 90 per cent of India’s LPG imports came from West Asian suppliers, leaving the country heavily exposed to regional disruptions. By April 2026, the United States accounted for nearly one-third of India’s LPG imports, up from just 8 per cent in February, according to a Crisil report.

The shift was aided by a 2.2 million tonne-per-year LPG supply agreement signed with the United States in late 2025, equivalent to about 10 per cent of India’s annual import requirement. Iran also re-entered India’s import basket, accounting for around 6 per cent of April imports, while supplies were sourced from countries like Argentina, Chile, France and the Netherlands.